Oil-Backed Cryptocurrency Could Hit Russian Markets Soon

Former Russian Energy Minister Igor Yusufov is proposing an oil-backed cryptocurrency. Yusufov’s mission may stand to profit from a brand new set of cryptocurrency laws that the decrease home of the Federal Assembly of Russia, also referred to as the Russian State Duma, is planning on adopting in March. Both items of reports had been initially revealed in on-line Russian information supply Rambler on February 21.

The new cryptocurrency laws are within the “closing stage of improvement,” in accordance with Oleg Nikolayev, a member of the State Duma Committee on Economic Policy. The report said that the laws are meant to help the event of the blockchain and cryptocurrency industries in Russia.

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Yusufov Believes Project Would Benefit All OPEC Countries

The launch of Yusufov’s mission might coincide with the passage of the laws into legislation; Yusufov said that the oil-backed cryptocurrency is within the closing levels of improvement.

In an interview with Rambler, Yusufov mentioned that the introduction of his oil-backed cryptocurrency “hypothetically permits us to keep away from the prices related to using currencies that aren’t backed up – the unpredictability of alternate fee fluctuations, the fee for foreign money alternate, [and] commerce restrictions.”

Yusufov additionally implied that his mission wouldn’t be particular to Russia, however would lengthen all through the OPEC (Organization of Petroleum Exporting Countries) area. “Such a union in [the countries’] personal pursuits might be not solely logical, but in addition economically justified.”

John Slyusarev, a managing companion at SMC Capital, informed The Block that an oil-backed cryptocurrency may additionally lower the affect of the US economic system on Russia. “This can also be the rationale why Venezuela created the Petro, which was designed to supply a method round U.S. sanctions,” he defined.

Russia’s ‘CryptoRuble’ Set to Launch This Year

Yusufov added that an asset-backed cryptocurrency is a wiser various to a so-called ‘nationwide cryptocurrency’ backed by fiat. “Since the creation of personal and nationwide power cryptocurrencies — a crypto-ruble, a crypto-dollar, and others — primarily based on nationwide currencies doesn’t make financial sense,” he mentioned.

The Russian authorities is certainly set to launch the “CryptoRuble” in mid-2019. Russian crypto journal Forklog reported that the cryptocurrency can be pegged to the ruble and non-mineable.

But what’s the function of the crypto ruble? Russia has talked overtly up to now about how a nationwide cryptocurrency might be used as a method to evade worldwide sanctions. “This instrument fits us very properly for delicate exercise on behalf of the state. We can settle accounts with our counterparties all around the world with no regard for sanctions,” mentioned Sergei Glazev, an financial advisor to Russian President Vladimir Putin, at a gathering in December 2017.

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